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Financial reports

Proact strives to give the shareholders, investors and financial analysts transparent, relevant and accurate information to increase knowledge of the Group’s operations and share

All Reports

Year-end report 2015

Good development in earnings and profit continuing

Year-end report 2014

Increase in cloud revenues and profit development good

Year-end report 2013

Improved profits and increased revenues in the fourth quarter

Jonas Hasselberg CEO Proact

Solna 7 May, 2024

A strong start to 2024 with growth in the service business and good growth in profitability

Comments from the CEO of Proact

2024 has begun strongly and we are delivering a first quarter with continued growth in the service business and very good growth in profitability. The macro-economic conditions seem to have stabilized with a lower inflation rate and improved demand in most of our markets and we also expect a better development on the German market.

Revenues for the quarter amounted to SEK 1,191 million (1,220), corresponding to a decrease of 2.4 per cent compared to a strong first quarter previous year, driven by high system sales.

The turnover from the system business amounted SEK 638.2 million (699.3) decreased with 8.7 per cent and organically 9.0 per cent.

The services business continues to develop well and grew by 6.0 per cent to SEK 550.5 million (519) and 5.4 per cent organically, driven by the sales of contracted cloud and support services, which compensated for a weaker development of consulting services, mainly within Business Unit Central.

Recurring revenues from cloud and support services, grew by 10.6 per cent to an annual rate of SEK 1,766 million (1,596). The positive trend for cloud services continued during the quarter where new agreements amounted to SEK 183 million (117) were signed, of which the majority was in Business Unit UK, followed by Business Unit Nordic & Baltics and Business Unit West.

During the first quarter, we closed and delivered a number of high-margin system deals, which together with efficiencies and growth in the service business contributed to an increased gross margin before depreciation of 28.9 per cent (24.9).

Adjusted EBITA during the quarter increased to SEK 94.5 million (56.8) corresponding to a margin of 7.9 per cent (4.7).

The development during the first quarter has further strengthened our balance sheet with a positive cashflow from operating activities of SEK 104 million, and we have acquired own shares within the mandate of the buyback program that was initiated in the fourth quarter of 2023. A total of 507,924 shares has been acquired and the company currently has approx. 1 million shares in its own custody. The board has proposed that the Annual General Meeting decide on the cancellation of 600,000 shares. Remaining shares are planned to be used for, among other things, future payments within the framework of the company’s performance share program.

Cyber security continues to be an increasingly prioritized area for our customers and Proact’s offering, and specialist expertise is well in line with their needs. During the first quarter, Proact has deepened the collaboration with the global cyber security specialist Arctic Wolf with the aim of elevating cyber security services in the Nordic market. Also, Proact has specialist expertise in Microsoft Cloud Security, and the other week, we were able to announce that Proact will be the world’s first partner to deliver the NetApp Data Protection and Security Assessment service, which further strengthens our portion in cyber security.

We continue to develop our partnerships to ensure we can meet our customers’ needs and drive development forward. The latest example is our new collaboration with Broadcom, which enables Proact to continue to deliver products and services based on VMware’s technologies even after Broadcom’s acquisition of VMware.

We have a positive view of the market and our ability to meet customers’ needs in cloud solutions, security and AI.

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